European stocks ended in the red Tuesday, but luxury shares were solidly higher on an earnings report from LVMH Moët Hennessy Louis Vuitton SE.

U.S. stocks on Tuesday posted their biggest percentage drop since early September after aluminum giant Alcoa Inc.'s results cast a shadow over the broader market as third-quarter earnings season got under way. A stronger dollar and a retreat in oil prices also hurt sentiment.

Asian shares were trading broadly lower Wednesday amid heightened odds of a December rate rise by the U.S. Federal Reserve, leading to worries that foreign investors will pull money out of Asia. "People are starting to wake up that the hike is coming," said Hao Hong, head of research at Bocom International. "The Fed is running out of excuses not to hike."